RICK L. KNUTH is the keeper of the Banking and Finance Law Spotlight Site.

Rick's practice focuses on assisting institutional and private lenders and borrowers in asset-based loan transactions, real estate financing, accounts receivable and inventory-based financing. He has over 30 years experience in loan documentation, mortgage and trust deed foreclosures, loan participations, credit opinion letters, workouts, and insolvency proceedings of all kinds. He counsels banks large and small in all aspects of their commercial credit relationships.

Look for postings by the other attorneys in our Commercial Lending and Banking Practice Group.

My blog entry of February, 2013 addressed using a pre-negotiation agreement before starting loan modification or workout discussions with a defaulting borrower. My central point was that pre-negotiation agreements are useful in two ways: (1) to cut off any claims of waiver and to clear the conversation of any shadow of lender liability; and (2) to focus the borrower’s mind on the need to solve the problem.

Let’s say you arrive at your desk one bright and sunny morning and find that your counterpart at a competing bank has left you a voicemail, proudly telling you she’s just made a loan to the nation’s top manufacturer of buggy whips, fully secured by advanced, state-of-the-art buggy whip manufacturing tools and an expansive and varied inventory of the best buggy whips made anywhere. "Would your bank like a piece of it?" she asks. Sounds great! You call her right back and exclaim: “We’re in!” And then the other banker asks, “Do you want participation or assignment?”

“Most-Favored Nation” is a term in international agreements, under which trade terms offered one nation are made no less favorable than the trade advantages given any other nation. In other words, the recipient gets the best deal the granting nation affords.

Section 523(a)(2)(A) of the Bankruptcy Code provides that a debtor may not receive a discharge for debts found to be incurred by fraud. It is well-settled that if a debtor borrowed money intending not to repay it, the debt is non-dischargeable. But what happens when the debtor-borrower misrepresents the purpose of the loan? That is, when the borrower tells the lender he needs the loan for x, but all the time he really intended to spend on y?

Welcome to guest blogger, Marianne G. Sorensen, an attorney in our St. George office that focuses on real estate law.

Could your (or your employees’) use of social media invite a claim that your lending practices are discriminatory?

“No way!” you state, knowing that you have trained bank personnel in complying with regulations issued under the Fair Housing Act, eliminated any overt evidence of discrimination, and carefully implemented policies to minimize claims of disparate treatment.

Pete Stevens is an attorney specializing in insurance reglatory law at Jones Waldo. His recent article in National Mortgage Professional magazine, "A New Era for Mortgage Closings," shares concerns for the propensity of scams and untruths in the mortgage industry. Read his piece on the growing importance of objective validation and vetting.

Franchisees can be among the best tenants for a retail landlord. They tend to generate above-average customer traffic and revenue, and can increase property values and cash flow to other tenants. Franchisees are using a proven business formula and they can look to the franchisor for valuable assistance. Finally, to a greater or lesser degree, the franchisor will police the franchisee in matters of operations and finance in many areas where the landlord will benefit.